Japan's feudal chiefs all issued their own money, hansatsu, in an array of incompatible denominations, but the New Currency Act of Meiji (1871) did away with these and established the yen as the new decimal currency. The former han became prefectures and their mints became private chartered banks which, however, initially retained the right to print money. For a time both the central government and these so-called "national" banks issued money; to end this, the Bank of Japan was founded in Meiji 15 (1882) and given a monopoly on controlling the money supply.

The Bank of Japan issued its first banknotes on Meiji 18 (1885), and despite some small glitches --$$$$$$$$$$$$$$$$ FOR EXAMPLE $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$"""""""it turned out that the konnyaku powder mixed in the paper to prevent counterfeiting made the bills a delicacy for rats $$$$$$,;the run was largely successful.""""""""""""""""""""""""""""""""""""""""""""""""""""""""In 1897 Japan joined the gold standard and in 1899 the former "national" banknotes were formally phased out.WKI